Caroline we break down results from alphabet and snap. Ed and we get a look at the quest three headset. Caroline and a conversation with the ceo of qualcomm as they unveil a new processor to take on the likes of apple and intel. But we start the show with the nasdaq on the downside to the moment, down 1. 8 . Google disappoints, but it sinks some of the buoyancy we have been seeing in the tech names of late. This is categorical their steepening going on at the moment, we see the yields at the long end of the curve, the tens and 30s selling off more yields, up eight, nine basis points. We are down at 4. 91 , so we are seeing some selloffs in the bond market. Bitcoin continuing to rally, up 3. 5 , but date down the individual micromoves, ed . Ed this is earnings again. If you get a good lens into the end markets, particularly in all kinds of Consumer Electronics and electronics broadly, Texas Instruments gave a revenue forecast that suggests the end markets are not recovering at the pace we have hoped. Texas instruments takes semiconductors that go into all kinds of things. The big ones last night were microsoft and google, a tale of two crowds. Mega growth on microsofts side, powered by the hype around ai, but google cloud missed estimates. All other estimates beat, but google cloud missed, and after the bell, you have metaand snap. Its interesting to see how they trade in the structure of this week, because often alphabet will report earnings first. That gives us a lens into the advertising industry. Resilience and stability in youtube, but there is concern in snap and meta, down 2 . How did quest three go down on the mixed reality side and how much is it committed to spending a on its metaverse vision, alongside with its working ai . Lets start with the tail end to clouds tale of two clouds. Why is the microsoft platforms cloud growing, but googles cloud not growing in the same way . It is a tale of good and great. The market wants great and the macroeconomic environment is complicated. Interest rates are sticky, inflation is still here and people want low op results if they are going to send the buy signals. I am not as bearish on google. I have seen the adoption and talked to its customers. The company missed by 20 million. That is not terrible. Microsoft returned to a faster pace of growth, and it was not just the growth of azure, but the companys ability to explain how ai is driving revenue. How azure is being driven, 3 versus 2 . The 30 ahead. The company has done a magnificent job of explaining its ai strategy and how ai is going to drive topline revenue. I dont think googles story was as compelling there, but i am not as bearish on google cloud. There is so much cloud growth to come, and intelligence forecasts say cloud is where it is going to happen, and the war is on. Ed i spoke to ruth porat, the president , chief Investment Officer and cfo, and she gave me a short answer customer optimization accounted for that number. What does that mean for your mind . Daniel well, right now, as i suggested, the macro is still complicated and the businesses are weighing investing growth, maybe go a little bit slower. We know that the opportunity around ai is very bullish and companies see productivity gains and the opportunities to create efficiencies, but we are also hearing about companies laying people off, weighing how quickly can we make an investment in ai and see a return . Are we looking to 10 productivity through the investment in these capabilities, or looking to optimize and reduce cost structures . Until we see more stability in the macro environment, i think companies are going to be a little more cautious. This is where microsoft kind of stood out. It looked across their portfolio and it was not the same. At microsoft, everyone is go, go, go, but i do not know if that is true across the board. Caroline interesting that you are saying the macro picture is mixed. Drill into what microsoft was showing. Was it in the right markets at the right time . Daniel they have told the story longer, they have their numbers and metrics welldefined. We are talking about being able to bear into what part of the business 1 to 2 on the currency adjustment on the yearoveryear growth basis, but faster growth in google. 22 versus upper 20s. To everyone is saying google bad, microsoft good. I think it started when the Company Started explaining the azure growth. 3 revenue compared to 2 revenue because of the companies ai, and it has been able to talk about ai pc concepts, its 30 per head per copilot, five dollars per head with being enterprise search. These are easy numbers to plug into a spreadsheet and say, where is the growth going to come from . If microsoft gets the story out better, it puts every other cloud player at a disadvantage. It is not a tale of good and bad, but it is a tale of ok, good and great. Caroline all things alphabet and microsoft, lets turn to snap. This is a macro picture for us as well. Please welcome jasmine amberg you lead coverage for social media and greater economy, and snap managing to initially rally on the fact that it looks better than expected. But is this fragile are showing a return to growth when it comes to marketeers . Jasmine the Revenue Growth in q3 was certainly good news for investors and others who have been wondering whether snap has what it takes to turn its ad business around. There are some worries and concerns specifically around the impact of the israelhamas war on its ad business in q4, which snap itself warned about. Q4 tends to be a quarter that is more heavily weighted towards brand advertising, brands tend to be more riskaverse, so it is possible there will be some impact on it. Three months from now, we have to remember that snap is on a good path and if we can continue this momentum, it will end the year and a better race than where it began. Caroline i am interested as to where it is investing. Microsoft got itself in the right place at the right time around ai, and snap was innovating in that space but didnt pay off. Jasmine ai is where snap needs to be innovating right now, and it made some moves in that direction. At the end of q3, it shu ttered its division. Those investments are becoming difficult to maintain and justify for the company. Ed the big one after the bell is meta, and you heard me say the shares are lower. I think folks look at alphabet and think probably about advertising, then they think about meta. But the story got so complicated metaverse or no metaverse, ai, no ai, and then adds. Jasmine meda started its rebound already in q2, and we are predicting more of the same this quarter. I will be looking to see more about reals, which is monetizing at a better reels monetization, which is monetizing better rates right now, and the subscription model planning to be rolled out in europe, as well as threads monetization. Be interested to see how those things Start Playing out. Ed jasmine enberg, rate to have you on the program. Lets stick with meta. Its first mixed reality headset, the quest three, is available, and we will be talking about it at earnings after the bell. I got a handson look. Check it out. Met is quest three, the latest mixed reality headset, is lighter and thinner than quest two, but launching apps and games is smoother, with an updated processor, snapdragon exar to chip. The 500 quest three allows you to switch between augmented reality and Virtual Reality modes. You can exercise, play games, and explore virtual galaxies. This game projects puffy things you have to catch in the world around you. They also have higher resolution. Wargames are coming meda has partnered with microsoft to bring them xbox games in december. We also tested the latest metasmart glasses. Meda has upgraded it with a 10 megapixel camera and five microphones. The glasses can take photos, record video and start a live Voice Control a static led light indicates a photo being taken. A flashing light means a video is being captured. The glasses also come equipped with medas ai assistant. Hey meta, take a photo. Ed you can send content directly to a friend via messenger or whatsapp, and livestream video to instagram or facebook. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Caroline weve all been affected in one way or another families, friends come by fertility treatments. They are often very expensive and in some areas, and accessible. Startups like gaia aim to increase accessibility to customers, it has already raised 20 feet Million Dollars in and featured on bloombergs list of startups to watch. We spoke to the chief of staff over at gaia. Can you explain about the innovative model here. How are you enabling any partnership to be able to look at accessing ivf . Gaia was born out of our founders experience with ivf. He went through five ivf cycles, four failed rounds, and realized how broken the system really was. The first thing he wanted to improve was access, because he saw the financial gamble people take. You have to save up all this money. We have created the most affordable way to start and protect your treatment. People will pay gaia a small protection fee to start treatment, and then gaia will take care of the Administrative Burden that goes on behind the scenes, like paying invoices and all of that, and the member focuses on going through treatment and pays gaia back in monthly installments if and when they have a child. If they dont, they have nothing more to pay. Caroline how do you take on that financial burden if, after several rounds, they never the blue realize they cannot have a child . Alexia we have investors that underwrite the risk for us. We have built models of Clinical Data sets of ivf model since the early 1990s, and predict success over a certain number of rounds, and we take on that risk. Caroline how innovative was this story to be able to tell to vcs, to convince and raise money for it . Alexia it was quite difficult to convince underwriters, this is a new model so we feel lucky to be backed by three incredible underwriters who understood and worked with us to build this product from the ground up. We are also lucky to have vcs who understand the space and do not view it as a niche Womans Health topic, but understood how important the topic was. We feel lucky with our backers and underwriters, obviously. Caroline and the male founder, ivf problems are often male and female in many ways. I sat here today because of ivf, so this is longterm how easy or difficult was it to access that data . Alexia you have to do an application with a Research Assistant helping us get access to it, and we have done a huge amount of research looking into whether bmi affects it, whether you should have bmi or age cutoff points and increase access and that manner. You have to put in an application to access it, all anonymized, but we work hard to get data to make sure we are increasing access. Caroline is it all u. K. Data, or is it wider . Alexia it is u. K. Based, but we also have data from greece since a lot of ivf markets are there as well. Caroline and how is it accessin different markets and different data in different geographies . Alexia you have different funding by the states, some countries are better than others. U. K. , 65 of ivf is paid outofpocket. The u. S. Is another high paid market. You have to look at what exists before entering. In terms of getting access to data, it is working with our partners and researchers the good thing about ivf, it does have data since ivf started in the 1970s. We have all that data that we have access to and can use to improve our models. Caroline and ai will prove pretty loose loose useful as well. Alexia arts of gaia, we got more coming up. Ed coming up, we will get a new sneak peek at a bloomberg documentary on the fall of ftx, and bring you the details in the trial of Sam Bankmanfried. when the day that lies ahead of me seems impossible to face a lovely day lovely day lovely day lovely day a bank that knows your business grows your business. Bmo. Caroline time now for talking tech. First up, the Chinese Government calling its probe of foxconn normal law enforcement. Regulators are conducting tax audits and reviewing land use of foxconn. Foxconn says it will work with authorities. Japan aiming to secure 10 billion dollars in subsidies for semiconductor prop products. Plus, apple, while it is set to revamp its tv app as part of an effort to become a larger player in the streaming world, changes include discontinuing apps on the apple tv set top box, and allowing to buy and rent movies and tv shows. For more, lets dig into this scoop with mark gurman. This is being talked about online across the day, mark. How will these changes help them compete . Mark this is a big upgrade coming to the tv app on apple tv. A new sidebar and interface makes it look more like netflix. The current tv app, it is not very intuitive. The idea is to aggregate content from a number of sources tv plus, which apple announced this morning is getting a price increase from seven dollars a month to 10 a month, and we will talk more about that over the course of the day. It integrates from there apps like espn, amazon prime, live news, other live sports networks, but it is confusing to navigate. This is designed to simplify it. They will also be removing the itunes movie and tv show apps. The reason you can do that, you can buy that content in the tv app and they want to push anyone looking to watch video on their devices to the tv app, the center of their video strategy. That is where you can sign up for these subscriptions, both apple tv addon packages and the 10 a month tv plus. Ed the breaking news of the day, apple has raised prices across all of its services. Where are the price increases and why, really . Mark going from seven dollars to 10 a month for apple tv . They increased it from five dollars to seven dollars a month in october of last year. Apple music, that price increase from 10 to 11 last year, that remains, but news plus is going from 10 a month to 13 a month, and apple arcade is going from five dollars a month to seven dollars a month. This comes as they have expanded the content offerings on apple arcade and apple tv , apple tv is getting more shows. Very frequently, there have been hits and everyone has been talking about the scorsese movie on there. Apple arcade, they doubled the amount of games they had since they launched at five dollars a month in 2019. They need to pay or publishers more money, publishers are not making so much money on news plus, so hopefully they will get in increased revenue share because of this rather than the money going into apples pocket. Apple one bundles went up significantly as well to incorporate the price increases, but fitness plus and icloud remain the same. Ed also across the bloomberg universe, ruin is the first documentary by bloomberg originals that dives into the collapse of ftx, as narrated by bloomberg journalists and the central players in the rise of digital assets. Here is a sneak preview of the film. I dont think he had a conception at some points that it was wrong. He just had the mentality that he has to win. It is like trying to explain a Business Ethics 101 two a baby. Sam has become a villain in everyones minds. This committee will not stop until we have discovered the cold truth behind the collapse of ftx. This is the nature of capitalism. Get over it. Ed joining us with more, bloombergs max chafkin. The project to be involved in. Tell us about it. Max it is continuing on. We learned hours ago that we will get testimony from Sam Bankmanfried at the trial. This has been a year of crazy news, a time in which Sam Bankmanfried went from being seen as one of the members of the establishment, one of the youngest billionaires ever, to potentially facing a life sentence. We could get a verdict as early as next week, if not the week after. Really, a lot happening here in crypto and a real reckoning after years of really serious growth. Caroline there was always sort of more and more extraordinary parts to this story, shocking anecdotes. What took you most by surprise when you were diving into this making . Max to me, the most surprising thing here was the way that Sam Bankmanfried, of course, talked his way into this amazing position, a position where he was in the room with famous venture capitalists, celebrities, tom brady, and attempted the same strategy on the way down. We saw him talking, giving these bazaar, meandering interviews in the weeks and months after ftx had gone bankrupt. I think we will see a crescendo of that when he takes the stand. This is somebody who has been able to wrap a lot of people around his finger, and watching that all unravel is staggering. Ed max chafkin, thank you very much. Ruin money, ego and deception, the fall of ftx. It airs at 8 00 p. M. New york time here on bloomberg television. Caroline we will talk more about the venture space, much was upended by ftx, but more about the european venture space. Ivp comes from the u. K. , and we are watching a key stock as well, this is bloomberg. Its easy to get lost in investment research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan wealth management. Ed welcome back to bloomberg technology. Ed ludlow in san francisco. Caroline hyde im Caroline Hyde in london. We won talk more about the world of the u. K. Vc and the u. K. , vcs pili, too much ago ghost like valley firm ivp born in the 1980s, took a leap across the pond Opening Office in london. Nearly 20 years after first started investing in europe. Alex them joins us to discuss what has been a boots on ground mentality like why did you decide having already had big hits given super self, why did you need to be here to access european talent more . Absolutely peered we had great successes in europe over the years. We have been fortune to be back in Companies Like wise and super cell and ui path and that gives us increased confidence in the region that there will be more entrepreneurs to come up and build global businesses out of europe. As it pertains to opening an office here in london, we want to be really close to the founders we back. We often serve on the boards of the companies we invest in so having the close relationship where we are a time zone or short flight away from the founders we work with is really important to our strategy. Caroline i think also what is happening,